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Article: Trade liberalization and productivity growth in Australian manufacturing industries.
- Article from:
- Atlantic Economic Journal
- Article date:
- June 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Atlantic Economic Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
The conventional wisdom that trade liberalization leads to productivity gains has found support from earlier studies, as well as recent studies, such as Dowrick [1994], Rodrik [1995], Harrison [1996], and Edwards [1998]. Proponents of trade liberalization argue that returns to entrepreneurial effort increase with exposure to foreign competition. However, Harvrylshyn [1990], Grossman and Helpman [1991], Rodrik [1992a, 1992b], and Tybout [1992] have questioned the importance of these supposed productivity gains. This skepticism stems from the view that trade liberalization might retard productivity growth by shrinking domestic firms' sales, which would ...